Question

If the cost of article is Rs 120 and VAT is 20%. Then the price of article including VAT is

Answer 1

Answer:

144

Step-by-step explanation:

vat rate =20%

cp with vat= 120×120/100=144

Answer 2

Answer:

Thanks

Step-by-step explanation:

For the retailer, we have:

Purchase price = Rs 100

Tax paid on purchase = Rs 10 (This tax is called input tax.)

Sale price = Rs 120

Tax payable on sale price = Rs 12 (This tax is called output tax.)

Input tax credit = Rs 10

So, VAT payable by the retailer = output tax-input tax=Rs 12-Rs10=Rs 2